On Thursday, Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) announced its plans to enhance Nitric Acid production capacity at its Dahej facility in Gujarat. The expansion project is projected to cost Rs 19.50 billion.
The company’s Board of Directors has given the green light to establish a Weak Nitric Acid (WNA) plant, with a targeted capacity of 300 kilotonnes per annum (KTPA). Additionally, two Concentrated Nitric Acid (CNA) plants will be constructed, collectively having a capacity of 150 KTPA, according to an official statement.
DFPCL intends to situate the new facilities within its existing Nitric Acid complex in Dahej, Gujarat, making use of available land for construction purposes.
In a statement, the company stated, “The overall estimated cost for the project, encompassing pre-operative expenses, contingencies, and financial expenditures during the construction phase, is approximately Rs 1,950 crore.”
To facilitate the brownfield expansion, DFPCL will be incorporating cutting-edge technology from renowned global technology providers. The projected commencement of production is tentatively set for the latter half of the 2025-26 fiscal year.
Sailesh C Mehta, the Chairman and Managing Director of DFPCL, affirmed, “The strategic augmentation of our Nitric Acid capacity is in direct alignment with the evolving market landscape.” He highlighted the company’s positioning to address the current demand-supply discrepancy while leveraging growth prospects and establishing market dominance in Nitric Acid.
A subsidiary of DFPCL contributes ammonia for raw materials, establishing a mutually beneficial scenario for both the project and the ammonia subsidiary.
DFPCL currently commands a significant share—over 45 percent—in the Indian Nitric Acid market. The existing Nitric Acid production capacity, encompassing both CNA and WNA, stands at 1,120 KTPA and is anticipated to rise to around 1,600 KTPA following the expansion.
Moreover, in response to changing market requirements, DFPCL has undertaken initiatives to innovate and develop specialized grades of Nitric Acid for premium applications in sectors such as solar energy and steel production. A segment of the new capacity will also be dedicated to producing specialty grades catering to pharmaceuticals, steel, solar energy, and other specialized applications.
DFPCL’s operational sites are strategically spread across Maharashtra (Taloja), Gujarat (Dahej), Andhra Pradesh (Srikakulam), and Haryana (Panipat).